Our View: Chamber recommendations could make a better casino deal

Thursday

Mar 27, 2014 at 5:00 PMMar 27, 2014 at 5:51 PM

If the proposed Foxwoods Resort Casino at the New Harbour Mall gains the support of city voters, it would be a regional destination with impacts that go beyond Fall River's borders. Therefore, it makes sense that a host agreement between the city of Fall River and Foxwoods should not only represent a good deal for the city, but should also be a fair deal for neighboring communities, which are on the outside looking in.

Herald News Editorial Board

If the proposed Foxwoods Resort Casino at the New Harbour Mall gains the support of city voters, it would be a regional destination with impacts that go beyond Fall River’s borders. Therefore, it makes sense that a host agreement between the city of Fall River and Foxwoods should not only represent a good deal for the city, but should also be a fair deal for neighboring communities, which are on the outside looking in.

That’s why the suggestions submitted to Mayor Will Flanagan and Fall River Office of Economic Development Executive Vice President Kenneth Fiola Jr. by the Fall River Area Chamber of Commerce and Industry offer a valuable perspective. While only Fall River residents vote in the casino referendum, the host agreement should be palatable — and beneficial — to Fall River and the surrounding area. It should also be a deal that protects the interests of existing businesses.

The chamber’s recommendations, which draw from provisions in three other host agreements in Massachusetts, as well as Foxwoods’ home of Ledyard, Conn., aims to do just that. At last Thursday’s public hearing on the host agreement, Fiola indicated the city’s goal of 55 percent of all casino jobs going to Fall River residents, with another 15 percent going to area residents. The chamber has proposed a different formula, with Fall River residents exclusively filling 20 percent of the jobs, and, on top of that, 50 to 75 percent would be made available to residents of Fall River and other communities within a 15-mile radius.

While Fall River rightfully has the upper hand for the casino within its borders, decisions should not be made in a bubble. City officials should be mindful of the desires of the residents and businesses in neighboring communities.

The chamber’s list of suggestions recommends some of the economic benefits of the casino go beyond the parochial interests of the city, with vendor preferences not only going to Fall River businesses, but also to businesses in communities within a 15-mile radius of the casino.

Under the chamber’s proposal, Foxwoods would be required to spend $7 million annually for goods and services from city vendors and, beyond that, another $35 million annually to those businesses in a 15-mile radius. Assigning a dollar amount would allow local vendor preferences to be measured. Another recommendation calls for Foxwoods to give out $250,000 annually in vouchers for patrons to spend in local businesses to offset any loss in business to the casino.

The chamber also proposed some specific provisions for Fall River, including an education impact fee of $2 million, to help the school department reduce class sizes, the creation of an educational liaison committee, as well as a local cultural and community development committee to support local nonprofits and cultural groups for cultural events and providing feedback.

It also includes a proposal for Foxwoods to pay the city an additional payment above its normal tax payments with a 2.5 percent annual increase. A percentage of those proceeds would be dedicated to tax or fee relief for businesses and residents.

Fall River should first look out for its own interests, but it is also in both the city’s and Foxwoods’ interests to be good neighbors. FROED is also a regional economic development agency; it does not only represent the city of Fall River.

The chamber will not take a position on the casino until a final host agreement is released, but including some of its recommendations in such an agreement could help secure such an endorsement. Let’s hope ideas from all parties who take the time to share them are given serious consideration and help city officials negotiate a good deal for all involved.